Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (July 2014)
31 slides from Amplitude Energy's investor presentation, Jul 7, 2014
Slide 1: Investor Pack
For personal use only Investor Pack
Slide 2: Important information and qualified evaluator
The information in this presentation: For personal use only • Is not an offer or recommendation to purchase or subscribe for shares in Cooper Energy Limited or to retain or sell any shares that are currently held. • Does not take into account the individual investment objectives or the financial sit
Slide 3: Cooper Energy company overview
Cooper Energy is an Australian oil and gas exploration and production company with: * high margin, cash generating oil production from the Cooper Basin & Indonesia * acreage and resources for the supply of gas to Eastern Australia * amanagement and board team with proven success in exploration, gas
Slide 4: Market opportunities
For personal use only PJ 800 • COE strategy initiated in 2012 Forecast east cost domestic demand Contracted 700 supply from: • Built market understanding; buyer 600 relationships; cost curve positions; and Surat-Bowen 500 development timelines Bass 400 New supply • Rising gas prices 300 contract opp
Slide 5: Building value and scale
For personal use only Here and now The 3- 5 year vision • Oil production ~ 0.5 MMbbls+ • Cooper Basin production focus • Oil and gas production circa 4 • Cash and financial assets of ~ $80 million boe million1 • Portfolio gas supplier to • Franking credits of $39 million2 eastern Australia • Buildin
Slide 6: Strong balance sheet
For personal use only COE share price Key figures Year to 30 June Share price range, 12 months to 30 June $0.35 - $0.585 $ 0.60 Shares on issue 329.2 mill 0.55 Market capitalisation1 $166.3 mill 0.50 Cash & investments2 $79.7 mill 0.45 Debt Nil 0.40 FY14 Production MMbbl/year 0.57 – 0.60 0.35 Share
Slide 7: Leveraging strengths for TSR
For personal use only Total Shareholder Return and Health Safety Environment Community Strategy • High margin oil • Fundamentals focus: market, technical, cost & commercial • Gas portfolio • Leverage and grow strengths People Funding Assets • Extensive knowledge • Strong balance sheet • Cooper Basin
Slide 8: Record results expected
For personal use only FY14 Interim financial results Interim financial results • Record half-year profit $ million unless otherwise indicated H1 14 H1 13 • Driven by increased production and higher oil prices Sales volume MMbbl 0.29 0.21 ▲ + 37% • Anticipate comparable second half and therefore reco
Slide 9: Oil, gas and Indonesia businesses
For personal use only Strong oil business Developing gas business Indonesia growth Cooper Basin Western Flank, Indonesia Gippsland Basin, Otway Basin Oil and gas, South Sumatra Basin • Oil production ~ 0.5MMbbl pa (existing) • Cost curve/market focussed • Prolific hydrocarbon province • High margin,
Slide 10: Strong fundamentals
For personal use only 0.7 0.6 2.5 0.58 0.5 2.0 0.52 to Netback 1 0.49 0.49 0.60 0.4 0.47 1 0.41 Royalties 1.5 0.3 Transportation 1.0 0.2 Production 0.5 0.1 0.0 0.0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 FY14 est Production COE Cooper Basin costs 2P Reserves (MMbbl
Slide 11: Solid production base
For personal use only • Oil production and exploration - current approximately 1,370 bopd (net) - Rincon discovery online mid-June ‘14 • Exploration and development continues to add reserves - new opportunities eg Patchawarra oil in PEL 93 • Extensive seismic acquisition completed for drilling in FY
Slide 12: Fresh exploration backed by 3D
For personal use only • 1,169 km2 in northern SA Cooper Basin • Lightly explored region with extensive Dundinna 3D seismic survey 577 km2 • Processing to be completed July 2014 • 5 well exploration program commencing September quarter 2014 • Key plays are Hutton/Birkhead and Triassic structural trap
Slide 13: Gas business: Cooper, Gippsland and Otway basins
For personal use only Market • Market-driven approach • Building customer relationships • Pipeline transport expertise Cooper Basin • Existing source of supply • Extensive infrastructure Gippsland Basin Otway Basin • Ideally located: close to markets and pipelines • Eastern Australia’s largest gas s
Slide 14: Conventional gas close to market
For personal use only 65% interest holder and Operator of BMG gas and liquids project • Existing wells and gas-gathering infrastructure • Economic enhancement options through adjacent fields & infrastructure Developing Business Case for optimum development • Available by mid - 2015 • Equity levels t
Slide 15: Proven gas province, close to market
For personal use only • Strong position across Penola Trough • Proven basin for conventional plays • Jurassic source rocks - gas prone with liquids potential • Close to markets • Close to infrastructure: − SA-Vic pipeline − Katnook gas plant Proven gas province, close to market
Slide 16: Jolly-1 and Bungaloo-1 results
For personal use only Jolly-1 Formation • Drilled to a total depth 4,026 metres • 78 metres of cores recovered in the Lower Sawpit and Casterton Upper Sawpit Sandstone Formations • 340 metres of gas shows within sands of Lower Sawpit Bungaloo-1 Sawpit • Drilled to a total depth of 3,713 metres Sands
Slide 17: High potential, proven prospectivity
For personal use only • Prolific hydrocarbon region • 285 discoveries - 3 billion bbl oil & 25 TCF gas • Not rigorously explored with 3D • Emerging Coal Bed Methane (CBM) & shale plays • US$8 - 10/GJ gas prices & market access • Existing infrastructure • Fit with Cooper Energy skill set • Attractive
Slide 18: Production and high value exploration
For personal use only Sukananti KSO (COE 55%) • Currently ~270 bopd (100% basis) • Multiple low risk development opportunities • 2-3 development wells planned for 2015 • Targeting production growth • Contractor share: oil 15%: gas 20%1 Sumbagsel PSC (COE 100%) • Shallow oil targets • Identifying bes
Slide 19: Realise value from sale to natural owner
For personal use only • 3 permits covering 12,600 km2 • Hammamet West oil discovery - gross contingent resource estimated to be 12.6 MMboe (1C) to 110.4 MMboe (3C)1 - oil development opportunity • Multiple prospects Divestment plan • Data room opened March 2014 • Due diligence by potential buyers on
Slide 20: FY15 activity schedule
For personal use only Location License Operator Sept Qtr Dec Qtr March Qtr June Qtr 1 exploration well, 3 development wells in H1 PEL 92 Beach Reprocessing then 4 exploration wells;3D reprocessing Cooper PEL 90, 100,110 Senex 5 exploration wells PPL 207 Senex 250 km 2 3D seismic, 3 appraisal wells 3
Slide 21: Financial, resource, project and corporate milestones
For personal use only FY14 Record Results • On track for record production and financial results Increased Resources • Contingent resources to be boosted substantially with inclusion from BMG gas and liquids, Tunisia FY15 Turning hydrocarbon and financial resources into reserves and production Oil E
Slide 22: Growth outlook
For personal use only Australian oil production Gas projects for supply from 2017-18 Indonesia: increased value and increased for base load earnings • Gippsland basin contribution and cash flow • Production growth from low risk • Increased reserve life • Otway basin value-add • PEL92/93 production t
Slide 23: Appendices
For personal use only Appendices
Slide 24: Cooper Basin oil update
For personal use only • Solid ongoing production performance primarily from Callawonga, Butlers and Parsons • Rincon brought online mid-June • Drilling: - Shelly-1 exploration well spud early July ’14 - 3 development wells scheduled for first half of FY15 - 4 further exploration wells scheduled for
Slide 25: Worrior oil field
For personal use only • Worrior oil field discovered 2003, production commenced November 2003 • 6 exploration wells drilled, 2 discoveries (33%) • Reserves primarily in McKinlay and Birkhead sandstones – high productivity • Additional potential identified in Murta and Patchawarra formations • FY15:
Slide 26: Otway Basin cross section
For personal use only South Bungaloo-1 Sawpit-2 North Salamander-1 Jolly-1 Sawpit-1 Dilwyn Formation 500 metres Aquifer Eumeralla Formation 2000 metres Laira Formation 4000 metres Pretty Hill Formation Subsurface fault Casterton Shale Casterton Shale Basement Not to Scale Casterton Formation gas mat
Slide 27: Production, exploration and development
For personal use only • First half production up from 54 bopd to 158 bopd (COE share) due to successful workover initiative • Sukananti completed as water injector/disposal well, triples existing capacity and facilitates extra oil production • Tangai-3 workover to commence in July • 2- 3 well develo
Slide 28: Seismic analysis, farm out and drilling
For personal use only • COE awarded permit April 2011 for a 6 year initial exploration term • Acquired 257 km of 2D seismic • Key play types are structural and carbonate reefs • Typical prospect sizes 5-10 MMbbl oil • CBM potential • Forward plan ‒ complete new seismic interpretation ‒ update prospe
Slide 29: Seismic acquisition and farm out
For personal use only • COE awarded permit May 2013 for a 6 year exploration initial term • Key play types are structural and carbonate reefs • Shallow oil prospect potential 5-10MMbbl • Deep gas prospect potential 100 to > 500Bcf • CBM potential • Forward plan ‒ complete new seismic interpretation
Slide 30: Management: David Maxwell and Hector Gordon
For personal use only David P. Maxwell Hector M. Gordon Managing Director Executive Director David Maxwell joined Cooper Energy in September 2011, with over 25 Hector Gordon is a highly experienced geologist with over 35 years’ experience in years’ experience as a senior executive with companies suc
Slide 31: Contact details
For personal use only Website: cooperenergy.com.au Investor relations: Don Murchland +61 439 300932 donm@cooperenergy.com.au Address: Cooper Energy Limited Level 10 Waymouth St Adelaide SA 5000 + 61 8 8100 4900